CVNA - Why Carvana Stock Just Jumped 34%
2024-05-02 11:52:06 ET
Carvana (NYSE: CVNA) reported its earnings results for the first quarter of 2024 last night, and the crowd went wild.
Shares of the used car "vending machine" company soared 34% through 10:20 a.m. ET on results that easily beat expectations. Instead of the $2.7 billion in sales that Carvana was expected to report, the company did $3.1 billion. And instead of losing money as Wall Street expected, Carvana earned a surprise $49 million profit.
Well, it sort of earned a profit. In a laconic press release, Carvana boasted that it sold nearly 92,000 automobiles in Q1, up 16%, for total revenue of $3.1 billion (up 17%). Net profits did amount to $49 million, but only because the company recorded a $75 million "gain in the fair value of Carvana's warrants to acquire Root common stock."
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Why Carvana Stock Just Jumped 34%